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Forex: EUR/JPY boosted by better than expected Services PMI

Pressured throughout the Asian session, the EUR/JPY revived a little after going as low as 121.14 as investors priced in expectations ahead of Markit Services PMI data in the Eurozone. The cross didn't even fully retrace losses, staying below 121.60. However, better than expected data in France in Germany is boosting sentiment.

In Germany, data only eased from 55.7 to 54.7 (consensus of 54.1). In France, data surprised by moving higher from 43.6 to 43.7 (consensus of 42.7).

The final reading of February Services PMI in Spain came in even lower than expected, from 47.0 to 44.7 (consensus of 46.0), while it came in line with consensus in Italy (down from 43.9 to 43.6).

"The immediate risk appears to be for extension of the consolidation phase", wrote UBS analyst Gareth Berry, pointing to resistance at 124.28 ahead of 127.92, while support is at 120.36 ahead of 118.73.

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